Photo: Greymouth Star / Brendon McMahon
Scenic Circle Hotel Group says work on the Waiho (Waiau) River stopbanks at Franz Josef Glacier before the 2016 flood had "worsened the impact" and enabled the floodwaters to pour through its former hotel.
"We believe that work done to the existing stopbanks on the Waiho River and the riverbed immediately before the flood may have worsened the impact on our hotel," executive chairwoman Lani Hagaman said in a statement on Friday.
"We also believe that this work may have been done without the necessary resource consent - or any affected party notification to us."
Her statement was in response to a claim by the West Coast Regional Council chief executive Heather Mabin that Scenic Circle was not being "community-minded" by failing to give affected party approval, thereby delaying the first stage of a government-funded flood protection scheme on the north bank.
The regional council let a contract a year ago for the $12.5 million scheme, approved by the government in 2021.
However, insurers for Scenic Circle have lodged a $30m claim against the regional council over the loss of the now derelict former hotel Mueller Wing.
Photo: Greymouth Star / Brendon McMahon
Westland District Council is the second defendant in the claim.
The Westland Council under former mayor Bruce Smith and former councillor Durham Havill proceeded to build the 'Havill wall' following the 2016 flood, but it was not properly consented.
Hagaman said everyone agreed improvement and extensions to the Waiho stopbanks were needed to prevent a repeat of 2016.
But the hotel chain's efforts to find out what occurred prior to that flood had been "stonewalled," she said.
"Our official requests for more information have been completely ignored by the West Coast Regional Council.
"It's not just about accountability - although that's very important. It's about understanding what happened so we can ensure it doesn't happen again."
Photo: Greymouth Star / Brendon McMahon
It was Scenic's "legal and moral right" to be heard as an affected party for the new flood protection scheme.
"The stopbank work is important and it's urgently needed. We welcome it. But the council must share information about what's planned and provide the community with reassurances that it is appropriately managing all risks."
The hotel chain wanted to be sure the reinvestment in the site did not pose undue risk.
"If there is another major flooding event, we don't want to be listening to excuses from future elected members or staffers about why the stopbank work wasn't done properly by their predecessors in the first place," Hagaman said.
Mabin said the content of the Scenic Circle statement now was disappointing.
"I am surprised at Scenic Circle, that they have made any comment pending the court case and on the events that lead up to that, as our understanding is that is embargoed. I am surprised and disappointed as the West Coast Regional Council is abiding by that."
The council had agreed not to comment about the historic events which led to the Scenic Circle insurance claim.
Regardless, she stood by her earlier comment that Scenic Circle was not helping the flood protection scheme move forward.
That was a "completely separate" matter to the insurance action and the delay in getting the new stopbank project moving affected everyone in the Waiho special rating district.
"Scenic Circle decided to withdraw from the combined rating district that would be responsible for this project. Therefore the rest of the community will be funding a co-funded portion of the project."
Scenic Circle had "fundamentally objected" to the joint rating district scheme by withholding affected party consent and then objecting on day 19 of the 20-day statutory period.
"That has stalled the progress of construction by three to four months. Meanwhile, the community watches and waits."
Local Democracy Reporting is Public Interest Journalism funded through NZ On Air